Professional Tool Reviews for Pros


Stanley Buys Black and Decker in Merger

Stanley Buys Black & Decker in Merger

Today it was announced that Stanley Works agreed to purchase Black & Decker Corp. for $3.5 billion in stock. While this may amaze some, talk of this merger have been occurring in some form or another for almost 30 years. In case you underestimate this merger, consider that Black & Decker is the parent company for DeWalt, Porter Cable & Delta power tools as well as Price Pfister faucets & Kwikset locks.When we say Stanley Buys Black and Decker we mean that you’re seeing one of the largest tool mergers in the industry.


Previously, merger attempts failed over various issues, like who was to take the reins as CEO. This time the two companies decided on Stanley CEO John Lundgren who worked for Georgia-Pacific prior to joining Stanley in 2004.

Nolan D. Archibald, Black & Decker’s chairman and chief executive, met with John F. Lundgren, Stanley’s chairman and chief executive over a special lunch. Both CEOs were apparently “totally swayed” by the potential costs savings, which they estimate could be in excess of $350 million (though no specifics on a timeframe for those savings were given).


The official company statement reads:

The combination of The Stanley Works and Black & Decker will unite two highly complementary companies with iconic brands and strong growth prospects to create a stronger, globally diversified industrial enterprise.

This compelling strategic combination is expected to create tremendous value for shareholders of both companies through the realization of significant cost synergies and enhanced growth opportunities. Additionally, because Stanley Buys Black and Decker, customers will benefit from a more comprehensive product and service offering, a world-class innovation process and our continuing commitment to operational excellence. And, employees of both companies will benefit from enhanced opportunities as part of a more global and diversified company.

Stanley Black & Decker will be a leading global company in hand and power tools & storage, and have a strong presence in mechanical and electronic security and engineered fasteners with such well-known brands as Stanley, Black & Decker, FatMax, DeWalt, Bostitch, Porter-Cable, Facom, Emhart Teknologies, Proto, Kwikset, Mac Tools and more.

Apparently Wall Street appreciated the move as Black & Decker stock climbed almost 24 percent and Stanley rose 5.1 percent. Think this is the final culmination? Nope. The company will continue to grow through acquisitions by using the saved money created by the initial acquisition. That could equate to $350 million more in takeovers.

The execs say that fewer than 4,000 jobs, or less than 10 percent of total positions at the combined company, will be cut. Most of the reductions will be in corporate offices, as well as through purchasing, regional and business unit consolidations and factory efficiencies.

Stanley shareholders will own about 50.5 percent of the equity of the combined company and Black & Decker shareholders will own about 49.5 percent, according to the statement.

If all goes as expected, the transaction will probably close in the first half of 2010.

Related articles

Makita Gears up for 2022 WOC

Makita is returning to the 2022 WOC (World Of Concrete) in Las Vegas next week. They plan to have an expansive and interactive booth in the new Diamond Lot outdoor exhibit area. Makita will present a full range of demonstrations for contractors. They plan to show off more cordless solutions that deliver lower noise, less […]

Table Saw Guide: How to Use a Table Saw

The heart of most woodworking shops is a table saw. Even when you have the choice of using a Festool track saw, panel saw, or any of the various types of miter saws, the table saw still reigns king for most woodworkers. Of all the tools, the best table saws provide tons of versatility. With […]

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x